Milling & Baking News - April 20, 2010 - 81

Ingredient Week 

 Wheat Futures

Prices of wheat futures continued to
advance last week from contract lows
set on all three exchanges a couple
of weeks earlier. The recent rally ran
counter to expectations of many analysts in view of the still bearish outlook for U.S. and world wheat supply
and demand for the remainder of the
current marketing year and even into
2010-11.
The U.S. dollar index during the past
couple of weeks retreated from recent
highs, which provided a boost to agricultural commodities but certainly
not to all commodities, as crude oil has
traded lower as have precious metals.
Equity markets continued to advance.
Market observers pointed to short
covering as a reason for the recent rise
in wheat futures prices. Additionally,
there seemed to be some anticipation
of possible fresh inflows of investment
money into the wheat markets.
Nevertheless, the United States and
the world faced no shortage of wheat.
While the U.S. Department of Agriculture on April 9 lowered its forecast
for 2010 U.S. wheat carryover by 51
million bus, to 950 million bus, June 1
wheat supply in the United States still
would be the largest since 1988. The

U.S.D.A. projected world wheat ending stocks in 2009-10 at 195.82 million
tonnes, which would be the largest
since 2001-02.
With wheat seedings in the United
States forecast to be the lowest since
1970, production this summer likely
will be sharply lower than the past
few harvests. But the winter wheat
crop, particularly hard winter wheat,
entered the growing season in great
shape. Some analysts suggested should
these good conditions continue, the
U.S. 2010 crop still might be above 2
billion bus, which would be larger than
the crops harvested in 2006 and 2002.
Net export sales of U.S. wheat during the week ended April 8 totaled
411,900 tonnes, with old crop sales at
101,100 tonnes and new crop at 310,800
tonnes. MBN

 Millfeed

Pricing was irregular although gains
predominated in primary markets as
conflicting factors generated some
confusion. Advancing prices of corn
and other feed ingredients fueled support at many points, while seasonally
slack formula business undermined a
number of other markets. Moderate
gains in the Southwest, Central states,

Wheat futures

Kansas City wheat futures
May contract, $ per bu

$ per bu; change in cents per bu

Kansas City
May
July
September
December
Chicago
May
July
September
December
Minneapolis
May
July
September
December

Season's
Low

- Change from -
April 9 April 1

Week's
High
Low

Year
ago

High

5.06½
5.17½
5.29½
5.47¼

+23¼c
+23½c
+23¼c
+23¼c

+36½c
+35¾c
+36c
+36¼c

5.06½
5.17½
5.29½
5.47¼

4.80¾
4.91¼
5.04
5.21¼

5.69
5.79½
5.89½
6.05¼

7.71¾
11.20
7.83
10.35

(06-01-09)
(03-12-08)
(06-02-09)
(06-26-08)

4.63¼
4.75
4.87
5.03

(04-01-10)
(04-01-10)
(04-01-10)
(04-01-10)

4.90½
5.02½
5.19¼
5.46

+24¾c
+23¼c
+22¾c
+21¾c

+35¾c
+34c
+34¼c
+31½c

4.91¼
5.03¼
5.20
5.47

4.63½
4.75
4.93¾
5.22¼

5.23
5.34¾
5.62¼
5.84¾

7.47¼
11.13½
7.64
10.22½

(06-01-09)
(03-12-08)
(06-02-09)
(06-26-08)

4.47
4.60½
4.77½
5.07

(04-05-10)
(04-05-10)
(04-05-10)
(04-05-10)

April 16

5.20
5.30¾
5.43
5.60½

Northeast and Southeast contrasted
with small losses in the Upper Midwest. At the same time, even Southwest
truck feed lost ground, and a number
of markets experienced setbacks on a
day-to-day basis.
Millfeed prices practically everywhere
failed to keep up with the strength in
competitive ingredients. Feed manufacturers encountered seasonally slack
business in a number of areas. Excellent pastures in some areas severely reduced demand for commercial rations
and forced some operators to cut back
millfeed buying or even cancel earlier
purchases. The impact of this was especially noticeable in the Midwest, where
spot trucklots became readily available.
In contrast, nearby trucks were extremely tight in Central states and the Northeast. The situation varied by region.
Wheat germ was steady, but a lack
of offers forced buyers to reach out for
germ even though a downward price
trend is common at this time of year.
Bulk middlings were $56 a ton in K.C.
and $70 in Minneapolis compared with
corn at $127 a ton and sorghum at $109,
both K.C. Corn gluten feed held at $100
a ton, distillers' dried grain was up $2 at
$118 a ton, and dehydrated alfalfa was
$5 higher at $210 a ton, all K.C. MBN

+18¾c
+18¼c
+18¾c
+18¾c

+31c
+30¾c
+30¼c
+30¾c

5.20¾
5.31½
5.43¼
5.61

4.98½
5.10
5.22
5.39½

6.35¾
6.23½
6.26½
6.36¼

9.65
9.65
8.20¼
8.26¼

(08-13-08)
(08-13-08)
(01-04-00)
(06-02-09)

4.82¼
4.94
5.05½
5.23¼

(04-01-10)
(04-01-10)
(04-01-10)
(04-01-10)

Chicago wheat futures
May contract, $ per bu

Bulk middlings
$ per ton, delivered rail unless noted
Spot
Kansas City
56 @ 60
Southwest, f.o.b. truck
66 @ 72
Minneapolis
70 @ 75
Upper Midwest, f.o.b. truck 66 @ 71
Chicago West
83 @ 88
Central states, f.o.b truck 84 @ 88
Buffalo
82 @ 87
Southeast
75 @ 80
N. & S. California
109 @ 124
Los Angeles, f.o.b. truck 105 @ 120
Pacific Northwest
105 @ 120
Upper Midwest, sacked
230
Wheat germ
260 @ 290
76 / April 20, 2010 Milling & Baking News

April
56 @ 60
66 @ 72
70 @ 75
66 @ 71
83 @ 88
84 @ 88
80 @ 85
73 @ 79
109@ 124
105@ 120
100@ 115

- Change from - Year
April 9
April 1
ago May-June July-Sept.
+1 @ 0
-4@ -5
88 @ 98
56 @ 60
60@ 64
-4 @ -3 -14@ -13 98 @ 108 67 @ 73
70@ 75
-4 @ -5
-6@ -6
89 @ 94
71 @ 76
73@ 79
-4 @ -5
-6@ -6
85 @ 90
67 @ 72
69@ 75
-4 @ -5
-6@ -6 102 @ 107 84 @ 89
86@ 92
+5 @ +3 +4@ +1
86 @ 93
76 @ 80
74@ 80
+3 @ +1 +10@ +7
75 @ 80
71 @ 76
68@ 74
+7 @ +7 +4@ +5
72 @ 77
70 @ 76
70@ 76
-
-
120 @ 130 105 @ 120 98@ 113
-
-
116 @ 126 101 @ 116 94@ 109
-
-10@ -5 105 @ 115 95 @ 110 90@ 105

Oct.-Dec.
84 @ 88
94 @ 99
...@ ...
...@ ...
...@ ...
...@ ...
70 @ 75
...@ ...
...@ ...
...@ ...
...@ ...

Minneapolis wheat futures
May contract, $ per bu

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Milling & Baking News - April 20, 2010

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